Cost recovery and irrigation management transfer (IMT) for irrigation/drainage infrastructure is crucial for appropriate construction/reconstruction and operation and maintenance (O&M) of infrastructure under limited governmental funding. The concept of cost recovery and IMT remains a new one in Egypt and there are several issues to be resolved. The current status and issues of cost recovery and IMT, especially O&M cost, in Egypt are reviewed and analyzed based on World Bank′s projects and JICA′s experience. Firstly, the current transitional status was identified based on World Bank′s projects, followed by identification of the remaining issues based on JICA′s experiences and finally future directions to achieve cost recovery and IMT. Providing the required training to Government staff, staff of water users′ associations (WUAs), and farmers is key to ensure they fully understand the concept and achieve the cost recovery and IMT.